2. Should you sell abroad?
Benefits
Access to new markets and customers
Higher purchasing power parity and a demand for
higher quality (ASP) products
Reduced dependence on a single market or region ,
seasonal insulation
Reach economies of scale, lower per unit production
cost, higher profit margin
Challenges
Complying with local laws
Understanding language and cultural differences,
branding according to local preferences, demand
generation
Managing logistics, supply chain and fulfilment issues
Processing payments and exchange rates
Challenges are operational. Multiple solutions available and ecosystem is enabled.
Growing
Merchandise Exports
Attractive
Opportunities
Evolving Government Policy
Support
Developing Value
Chains & Ecosystem
Understanding language and cultural differences,
branding according to local preferences, demand
generation
Managing logistics, supply chain and fulfilment issues
3. Deciding where and what to sell
Define business plan based on area of interest, available resources and target
market.
Country Target segment Product Preferences
USA
Age: 20-35 years
Gender: Both male and female
Occupation: Professionals, students, or self-employed
Interests: Fitness, wellness, organic food, yoga, meditation
Behavior: Prefers online shopping, reads product labels, willing to pay a premium for quality and
organic certification
Organic
health
supplements
UAE
Age: 20-40 years
Gender: Predominantly female, but also male
Occupation: Professionals, homemakers, or self-employed
Interests: Beauty, wellness, organic products, fashion
Behavior: Prefers online shopping, invests in self-care and high-quality beauty products
Organic
beauty
products
UK
Age: 18-35 years
Gender: Both male and female
Occupation: Students, professionals or self-employed
Interests: Fashion, sustainability, social causes
Behavior: Prefers online shopping, willing to pay a premium for eco-friendly products and brands that
align with their values
Indian
traditional
clothing
Australia
Age: 25-45 years
Gender: Both male and female
Occupation: Professionals, homemakers or self-employed
Interests: Interior design, sustainability, DIY crafts
Behavior: Prefers online shopping, invests in eco-friendly and sustainable home decor items
Eco-friendly
home dรฉcor
Illustrative
example
4. Fulfilling customer orders
Outsource fulfilment to third party logistics players to leverage their scale.
Two ways to fulfil customer orders:
Dropship - Ship orders directly from India after
sale is made on marketplace / website
Forward deployed inventory in the
destination market helps to fulfill customer
orders locally
1 2
Benefits
No deadstock:
Remove risk of unsold
inventory as orders get fulfilled
after sale
Wide product range:
Customers have access to
products without sellers having
to invest in inventory.
Low operational costs:
Reduced costs and hassles of
inventory management.
Low conversion:
Higher delivery timelines might
lead to lower sales
Customer satisfaction:
Higher shipping times might
lead to customer dissatisfaction
Risk of Scaling:
Scaling can be challenging due
to chargebacks and potential
account shutdowns
Challenges Benefits
Product Availability:
Product is readily available and
reaches customer quicker
Better rates:
Bulk shipping and storage provides
access to better rates and improved
margins
Returns Management:
Returned goods can be stored in
warehouse, re-packed and re-sold
High Initial Investment:
Inventory needs to be deployed
in destination market before sale
Complex Logistics:
Involves different customs
procedures, order & inventory
management systems
Market Volatility:
If demand decreases suddenly,
sellers are left with unsold stock
Challenges
5. Dropshipping partner evaluation framework
Forward Deployment partner evaluation
framework
1 2
Identifying the right fulfilment partner
Reliability
Delivers products on time and in good condition.
Shipping Speed
Fast shipping crucial in e-commerce.
Cost Efficiency
Competitive rates without compromising on service quality.
Customer Service
Provides excellent customer service, including handling queries and
resolving issues promptly.
Customs Expertise
Has expertise in handling customs clearance
Technology Integration
Provides easy integration with e-commerce platform or
website for seamless order processing and tracking.
Global serviceability
Provides accessibility to wide range of countries
Reliability
Products reach the warehouse OTIF, are stored properly and delivered to customer in
good condition
Cost Efficiency
Competitive rates provided for shipping, storage and last mile fulfilment. Transparent costs,
no hidden charges
Warehouse
management
Efficient warehouse management systems in place to ensure proper storage and
handling of inventory
Technology Integration
Provides easy integration with e-commerce platform and website for seamless order
processing, inventory visibility and tracking
Customs Expertise
Has expertise in handling customs clearance, well-defined processes for handling import
duties
Customer Service
Provides excellent customer service, dedicated account managers for handling queries
and resolving issues promptly
Value Added Services
Importer on record services, trade compliance checks, Quality control checks, labelling
and barcode generation, promotional item insert